Today legendary trader Jim Sinclair told King World News that today is a day of financial infamy as Cyprus depositors have now officially been flushed. Sinclair also stated that history will show this day as being as serious as the flushing of Lehman Brothers. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.
Eric King: “Jim, we now know the answer to the ‘Cyprus Solution.’”
Sinclair: “Yes, Cyprus depositors have now been flushed. The Bank of Cyprus, the island’s largest bank said it has converted 37.5% of deposits exceeding 100,000 euros into a Class A share, with an additional 22.5% held as a buffer for possible conversion in the future.
Another 30% will be temporarily frozen and held as a deposit. So the amount of money that has been taken from the Cyprus depositors is in all practicality almost their entire accounts. Major depositors funds have now been taken in grand style.
Depositors everywhere are now defined as lenders to the banks. Today is a day of financial infamy. History will see this event as serious as the flushing of Lehman Brothers….
“Lehman Brothers was flushed to create a flow of huge funds into the financial system.
The flushing of Cyprus was done to steal massive funds from depositors. The major percentage of their funds taken were replaced by worthless stock in a bankrupt bank. Up to now everything in Cyprus was speculation as no definitive action had taken place. Now it has.